Stock market: what is happening on the markets before the opening Tuesday May 7

Stock market: what is happening on the markets before the opening Tuesday May 7
Stock market: what is happening on the markets before the opening Tuesday May 7

(AP Photo/Ahn Young-joon)

MARKET REVIEWS. The stock markets advanced on Tuesday, brightened by investors’ hopes of seeing the American central bank lower its key rates before the end of the year.

Stock market indices at 8:00 a.m.

Futures contracts Dow Jones collected +1.63 points (+3.49%) to 48.27 points. Futures contracts S&P 500 dropped -1.44 points (-0.80%) to 178.35 points. Futures contracts Nasdaq rose by +1.63 points (+3.49%) to 48.27 points.

In London, the FTSE100 gained +83.62 points (+1.02%) to 8,297.11 points. In Paris, the CAC 40 gained +18.84 points (+0.24%) to 8,015.48 points. In Frankfurt, the DAX increased by +92.33 points (+0.51%) to 18,267.54 points.

In Asia, the Nikkei of Tokyo closed up +599.03 points (+1.57%) to 38,835.10 points. For his part, the Hang Seng of Hong Kong fell -98.93 points (-0.53%) to 18,479.37 points.

On the oil side, the price of a barrel of American WTI fell -US$1.44 (-0.80%) to US$178.35. The barrel of North Sea Brent rose by +US$1.63 (+3.49%) to US$48.27.

The context

“A global wind of relief continues to blow through stock markets this week as investors’ hopes for a cut in US borrowing rates grow following the latest US jobs report,” comments Pierre Veyret, ActivTrades analyst.

The scenario of a rate cut by the American Federal Reserve (Fed) this year was reinforced by the declarations of members of the Fed, who even if they remained “at a distance from any signal on the timetable for rate cuts », nevertheless “openly avoided the messages” in favor of a rate increase from the Fed, comment the analysts at Deutsche Bank.

On the bond market, interest rates are falling slightly.

Furthermore, “one thing is certain, the corporate results season is going well,” rejoices Ipek Ozkardeskaya, analyst at Swissquote Bank.

On Tuesday, investors were digesting the results of Geberit (+5.63%), Bouygues (-1.47%), Adecco (-0.56%), BP (-0.59%), Fresenius Medical Care (- 6.66%), Siemens Healthineers (-4.42%), Disney (-4.75% in trading preceding the opening of Wall Street), Coty (+3.74%, idem).

UBS and the banks

The banking giant UBS returned to profit in the first quarter after two quarters in the red due to the integration of Credit Suisse, far exceeding expectations with a net profit of 1.8 billion US dollars, up 71% year-on-year . Its stock rose 9.68% in Zurich.

In Milan, Unicredit also progressed by 2.88%, after publishing a net profit up 24% to 2.6 billion euros in the first quarter, more than what the analyst consensus provided by the bank predicted. Unicredit also raised its forecast for 2024.

In Madrid, the bank Sabadell (-1.35%) announced Monday, following a meeting of its board of directors, to reject the merger offer presented by its compatriot BBVA (+2.29%).

Infineon, chips jump

The German semiconductor manufacturer Infineon on Tuesday lowered its annual revenue and operating margin forecasts, citing a difficult market environment, particularly in the automotive sector, which dented performance in the second quarter.

But Stifel analysts are pleased that “the automotive sector is still expected to grow.” Infineon’s financial results are slightly above analysts’ forecasts.

Its action took off 12.79% in Frankfurt and in the same sector STMicroelectronics gained 3.41% in Paris and ASML 0.61% in Amsterdam.

On the side of oil, currencies and bitcoin

The prices of oil fell slightly, shaken by the uncertainty of the situation in the Middle East, where Israel refused a truce proposal in Gaza, and somewhat weighed down by data pointing to gloomy American demand.

The price of a barrel of North Sea Brent for delivery in July fell 0.28% to US$83.09 and its American equivalent, a barrel of West Texas Intermediate (WTI)for delivery in June, lost 0.34% to 78.21 dollars.

In the foreign exchange market, the yen continues its descent against the dollar (-0.37%) to 154.48 yen per dollar. As for the euroit was almost stable (-0.03%) against the dollar, at US$1.0766 per euro.

THE bitcoin was worth US$63,596, up slightly by 0.46%.

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